2018 Q4 Form 10-K Financial Statement

#000110121520000049 Filed on February 28, 2020

View on sec.gov

Income Statement

Concept 2018 Q4 2018 Q3 2018 Q2
Revenue $1.465B $1.423B $1.397B
YoY Change -1157.4% -25.58% -23.31%
Cost Of Revenue $697.8M $654.0M $593.6M
YoY Change -206.78% -38.68% -41.48%
Gross Profit $766.8M $769.2M $803.6M
YoY Change 48.89% -9.07% -0.47%
Gross Profit Margin 52.36% 54.05% 57.52%
Selling, General & Admin $23.50M $42.50M $45.20M
YoY Change -52.04% 21.08% 35.74%
% of Gross Profit 3.06% 5.53% 5.62%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $121.1M $122.5M $122.0M
YoY Change -1.62% -1.37% -2.79%
% of Gross Profit 15.79% 15.93% 15.18%
Operating Expenses $240.5M $288.2M $405.7M
YoY Change 33.76% -20.85% -9.22%
Operating Profit $508.5M $479.8M $396.7M
YoY Change 51.7% -0.42% 10.04%
Interest Expense $144.7M $136.8M $133.6M
YoY Change -405.27% -192.31% -191.13%
% of Operating Profit 28.46% 28.51% 33.68%
Other Income/Expense, Net
YoY Change
Pretax Income $363.8M $343.0M $263.1M
YoY Change 26.41% 2.82% 23.0%
Income Tax $110.7M $54.30M $39.30M
% Of Pretax Income 30.43% 15.83% 14.94%
Net Earnings $284.9M $296.5M $217.8M
YoY Change 4.97% 27.14% 58.17%
Net Earnings / Revenue 19.45% 20.83% 15.59%
Basic Earnings Per Share $5.28 $5.41 $3.94
Diluted Earnings Per Share $5.25 $5.39 $3.93
COMMON SHARES
Basic Shares Outstanding 54.80M 55.20M
Diluted Shares Outstanding 55.00M 55.40M

Balance Sheet

Concept 2018 Q4 2018 Q3 2018 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $3.817B $3.601B $3.449B
YoY Change -8.9% 8.27% 77.24%
Cash & Equivalents $3.817B $3.970B $3.527B
Short-Term Investments
Other Short-Term Assets $293.2M
YoY Change
Inventory $248.0M $266.0M $233.0M
Prepaid Expenses
Receivables $404.0M $17.18B $17.49B
Other Receivables $1.951B $1.721B $984.0M
Total Short-Term Assets $24.71B $22.77B $22.15B
YoY Change 3.97% 10.27% 19.58%
LONG-TERM ASSETS
Property, Plant & Equipment $288.2M $610.0M $621.0M
YoY Change -53.06% -0.81% 1.97%
Goodwill $954.8M
YoY Change -3.83%
Intangibles $217.4M
YoY Change
Long-Term Investments
YoY Change
Other Assets $636.4M $65.00M $83.00M
YoY Change 2172.86% 182.61% 277.27%
Total Long-Term Assets $5.676B $6.996B $6.797B
YoY Change -17.95% -3.46% -5.61%
TOTAL ASSETS
Total Short-Term Assets $24.71B $22.77B $22.15B
Total Long-Term Assets $5.676B $6.996B $6.797B
Total Assets $30.39B $29.76B $28.95B
YoY Change -0.97% 6.7% 12.53%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $486.2M $606.0M $532.0M
YoY Change -25.31% 14.34% 30.71%
Accrued Expenses $322.2M $365.0M $395.0M
YoY Change -27.27% 8.96% 30.79%
Deferred Revenue $766.1M
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $9.394B $7.854B $8.761B
YoY Change 19.87% -5.33% 26.73%
Total Short-Term Liabilities $11.48B $9.628B $10.48B
YoY Change 17.45% -3.8% 24.14%
LONG-TERM LIABILITIES
Long-Term Debt $15.78B $16.77B $15.36B
YoY Change -12.25% 10.45% 3.84%
Other Long-Term Liabilities $392.4M $846.0M $803.0M
YoY Change -54.37% -0.59% -0.62%
Total Long-Term Liabilities $392.4M $17.62B $16.17B
YoY Change -97.92% 9.86% 3.61%
TOTAL LIABILITIES
Total Short-Term Liabilities $11.48B $9.628B $10.48B
Total Long-Term Liabilities $392.4M $17.62B $16.17B
Total Liabilities $28.06B $27.47B $26.83B
YoY Change -2.69% 4.45% 10.4%
SHAREHOLDERS EQUITY
Retained Earnings $5.012B
YoY Change
Common Stock $3.174B
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.332B $2.291B $2.119B
YoY Change
Total Liabilities & Shareholders Equity $30.39B $29.76B $28.95B
YoY Change -0.97% 6.7% 12.53%

Cashflow Statement

Concept 2018 Q4 2018 Q3 2018 Q2
OPERATING ACTIVITIES
Net Income $284.9M $296.5M $217.8M
YoY Change 4.97% 27.14% 58.17%
Depreciation, Depletion And Amortization $121.1M $122.5M $122.0M
YoY Change -1.62% -1.37% -2.79%
Cash From Operating Activities $729.5M $703.6M $671.9M
YoY Change -13.19% -2.87% 19.49%
INVESTING ACTIVITIES
Capital Expenditures $50.50M $50.80M $53.80M
YoY Change 3.48% -15.05% -23.36%
Acquisitions
YoY Change
Other Investing Activities -$960.8M -$573.7M -$575.3M
YoY Change -63.16% 8.18% -55.48%
Cash From Investing Activities -$1.011B -$624.5M -$629.1M
YoY Change -61.94% 5.83% -53.82%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 288.1M 363.0M -655.2M
YoY Change -87.37% -78.0% -178.37%
NET CHANGE
Cash From Operating Activities 729.5M 703.6M 671.9M
Cash From Investing Activities -1.011B -624.5M -629.1M
Cash From Financing Activities 288.1M 363.0M -655.2M
Net Change In Cash 6.300M 442.1M -612.4M
YoY Change -98.65% -75.22% -1805.85%
FREE CASH FLOW
Cash From Operating Activities $729.5M $703.6M $671.9M
Capital Expenditures $50.50M $50.80M $53.80M
Free Cash Flow $679.0M $652.8M $618.1M
YoY Change -14.21% -1.78% 25.6%

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2
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<p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Derivative Instruments</span>—The Company uses derivatives to manage its exposure to various financial risks. The Company does not enter into derivatives for trading or other speculative purposes. Certain derivatives used to manage </p><p style="font-family:'Times New Roman';font-size:10pt;margin:0pt;">the Company’s exposure to foreign currency exchange rate movements are not designated as hedges and do not qualify for hedge accounting.</p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><i style="font-style:italic;">Derivatives Designated as Hedging Instruments</i>—The Company assesses both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in the hedging transaction, including net investment hedges, have been highly effective in offsetting changes in the cash flows or remeasurement of the hedged items and whether the derivatives may be expected to remain highly effective in future periods.</p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;">The Company discontinues hedge accounting prospectively when (1) it determines that the derivative is no longer highly effective in offsetting changes in cash flow of the hedged item; (2) the derivative expires or is sold, terminated, or exercised; (3) it is no longer probable that the forecasted transaction will occur; or (4) it determines that designating the derivative as a hedging instrument is no longer appropriate.</p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;">Changes in the fair value of derivative instruments designated as hedging instruments, excluding any ineffective portion, are recorded in other comprehensive income (loss) until the hedged transactions affect net income. The ineffective portion of this hedging instrument is recognized through net income when the ineffectiveness occurs.</p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><i style="font-style:italic;">Derivatives not Designated as Hedging Instruments</i>—Certain foreign currency exchange forward contracts are not designated as hedges as they do not meet the specific hedge accounting requirements of ASC 815, “Derivatives and Hedging.” Changes in the fair value of the derivative instruments not designated as hedging instruments are recorded in the consolidated statements of income as they occur.</p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><i style="font-style:italic;">Net Investment Hedges</i>—The Company used Euro-denominated debt to hedge a portion of its net investment in foreign subsidiaries against adverse movements in exchange rates. The effective portion of the foreign currency gains and losses related to the Euro-denominated debt is reported in accumulated other comprehensive income (loss) in the Company’s consolidated balance sheets. The gains or losses will be subsequently reclassified into net income when the hedged net investment is either sold or substantially liquidated. </p><p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="visibility:hidden;">​</span></p>
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<p style="font-family:'Times New Roman';font-size:10pt;text-indent:18pt;margin:0pt;"><span style="font-style:italic;font-weight:bold;">Management Estimates</span>—The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.</p>
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CY2019 ads Revenue Performance Obligation Number
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